Avondale Neighborhood - Chicago - Multi-Unit Thoughts / Help

[Dinesh Aravindhan]

Hey, 

I'm pretty new to real estate investing. Currently looking at investing in a 3-unit building in the Avondale neighborhood in Chicago. 

First, I wanted any thoughts you may have on the rental market in this area? Oversupplied? Undersupplied? Peaking? 

Second, I wanted thoughts on cash on cash returns to be expected in this area? The building I'm looking at currently is ~$500K for 3 units and after all expenses has a Cash on Cash return of 5% and a cap rate of 6.5%. Does this seem reasonable or too expensive? I'm really hoping for a low maintenance / low-risk investment that I can buy and hold. 

Thank you for your help!